Egypt continued to lead startup activity in the continent in 2024, accounting for over a third of the funding the continent received during the year despite seeing a 21% y-o-y drop, according to Magnitt’s FY 2024 venture investment summary report.

The figures: Egyptian startups raised a combined USD 329 mn across 78 funding rounds during the year. MNT-Halan closed Egypt, Africa, and MENA’s largest round during the period with its USD 157.5 mn round announced in July.

Zooming out: African startups raised a total of USD 1.1 bn during the year, marking a 44% y-o-y drop in funding. Startups across the continent closed 294 funding rounds in 2024, a 39% y-o-y dip. The total number of investors in the continent and exits also dipped — the number of investors fell 18% y-o-y to 385 and the number of exits fell 27% y-o-y to 22.

Brace for a more eventful 12 months on the funding front: “2025 should be the year that some international VC capital returns to more frontier markets — think Egypt, Türkiye and Pakistan — where it has been largely absent for the last few years,” Endeavor Catalyst Managing Partner Allen Taylor said.

A glance at the region: The UAE led the region in volume of transactions with 188, capturing 41% of all MENA transactions during the year, while KSA dominated total transaction value, with Saudi startups raising some USD 750 mn.

Tags: